Bitcoin Surges 170% Despite ECB's "Last Gasp" Warning

Bitcoin defies economists' predictions

Bitcoin (BTC) has seen a remarkable gain of almost 170% since the European Central Bank (ECB) warned of its impending "irrelevance." Economists' expectations have been proven wrong as BTC price action has surged in the opposite direction.

ECB's premature obituary

The ECB published a blog post on November 30, 2022, claiming that Bitcoin's value would continue to plummet. At the time, Bitcoin was trading at just $16,400. The post suggested that this was only the beginning of a downward spiral towards irrelevance. However, Bitcoin's performance has defied these predictions.

A surprising comeback

Contrary to expectations, Bitcoin experienced a swift recovery after briefly revisiting $16,400 in mid-December. In Q1 2023 alone, BTC/USD added 70% to its value. As of now, Bitcoin is trading at $43,800, its highest level since April 2022, marking a 166% increase from the time of the ECB's warning.

Amusing blunder and skepticism

Crypto enthusiasts find amusement in the ECB's inaccurate prediction. Philip Swift, creator of statistics platform Look Into Bitcoin, expressed satisfaction with the outcome. Alex Thorn, head of firmwide research at crypto education resource Galaxy, questioned the ECB's credibility, asking what else they might be wrong about.

ECB's stance on Bitcoin

The ECB has long been skeptical of Bitcoin and has often faced embarrassment due to its market analysis. ECB Chief Christine Lagarde has openly expressed her disdain for cryptocurrencies and recently admitted that her son lost money after ignoring her advice on investing in crypto.

The ECB is currently considering the rollout of a central bank digital currency (CBDC), which has sparked controversy due to concerns about transaction control.

Note: This article does not provide investment advice. Readers should conduct their own research before making any financial decisions.